While I am still working on back testing program, I will start forward testing , but this time, I am paper trading. Dummy trading involves certain degree of pattern recognition, this forward testing will improve my skill in this area.
ES,trend chart turned down. I was looking for any opportunity to establish short position. Short position was taken below 11:50am (NY time) candle, after dummy system signaled.
I have two exit targets. Yesterday’s low served as minimum target (1.3R), and Fib extension (From yesterday’s high to today opening range’s low) 100% as second target (4.6R). Initial plan, I would let the profit run if it broke yesterday’s low. I would cover the position at yesterday’s low if market reversed.
Second target was hit.
Here is the 5-min chart:
[photopress:ES_short.jpg,full,pp_image]
Another trading opportunity was found in E-mini Nasdaq. position was established below 11:55am (NY time) candle. NQ position was closed at minimum target (4.2-R) at yesterday’s low. It failed to reach Fib extension 100%.
Here is the 5-min chart of NQ
[photopress:NQ_short.jpg,full,pp_image]
Gav,
I need some clarification on your second exit target:
Previous Day’s (12/11) High: 1415.60
Today’s (12/12) opening Bar (5-min) low: 1411.29
1415.60 – 1411.29 = 4.31
Entry would be on opening of 11:55 bar: 1411.25
Stop on high of previous bar: 1411.57
R = 1411.57 – 1411.25 = .32
(I’m using cash, not futures)… can you elaborate on your math? Incidentally, “Dumbling” took the same trade…I’ll email you results if you like.
-MagicT
Gav,
I need some clarification on your second exit target:
Previous Day’s (12/11) High: 1415.60
Today’s (12/12) opening Bar (5-min) low: 1411.29
1415.60 – 1411.29 = 4.31
Entry would be on opening of 11:55 bar: 1411.25
Stop on high of previous bar: 1411.57
R = 1411.57 – 1411.25 = .32
(I’m using cash, not futures)… can you elaborate on your math? Incidentally, “Dumbling” took the same trade…I’ll email you results if you like.
-MagicT
Hey Dave,
I was using futures chart of ES.
Here is how did I get the second target.
I used high of 11-Dec 1429.25 to low of opening range (first 5-min bar in 5-min chart) of 12-Dec-2006 (1424), to construct Fib extension.
Fib extension level 100% was 1418.75. Day low of 12-Dec-2006 was 1417.25. Hence second target was hit.
I used the existing tool Fib extension provided by Tradestation. So I did not any math work.
I will send you the chart via email shortly.
Gav
Hey Dave,
I was using futures chart of ES.
Here is how did I get the second target.
I used high of 11-Dec 1429.25 to low of opening range (first 5-min bar in 5-min chart) of 12-Dec-2006 (1424), to construct Fib extension.
Fib extension level 100% was 1418.75. Day low of 12-Dec-2006 was 1417.25. Hence second target was hit.
I used the existing tool Fib extension provided by Tradestation. So I did not any math work.
I will send you the chart via email shortly.
Gav
ok, and regarding the first target, on cash, that was previous day’s close of 1408.56…what do you have for futures?
ok, and regarding the first target, on cash, that was previous day’s close of 1408.56…what do you have for futures?
First target was using Yesterday’s (11-Dec-2006) low of ES futures which was 1421.5
First target was using Yesterday’s (11-Dec-2006) low of ES futures which was 1421.5
Regarding the bar marked with the red arrow. I assume this is the “Entry Bar” not the “Trigger Bar”, correct? In other words, you are making your trade entry on the Red Arrow Bar?
Regarding the bar marked with the red arrow. I assume this is the “Entry Bar” not the “Trigger Bar”, correct? In other words, you are making your trade entry on the Red Arrow Bar?
Red arrow is pointing at trigger bar. I made my trade entry below the low of trigger bar.
Red arrow is pointing at trigger bar. I made my trade entry below the low of trigger bar.